Bitcoin ETF Enthusiasm Cools as Fidelity, Ark 21Shares, and Grayscale GBTC Record $1.1B Loss

US Bitcoin ETFs have recorded significant outflows, losing more than $1.1 billion between August 27 and September 6.

Major US Bitcoin ETFs have recorded massive outflows, losing more than $1.1 billion in net assets over ten days. The withdrawals have caused Bitcoin ETF net inflows to drop sharply, with the total assets of Bitcoin ETFs now falling below $50 billion.

The outflows are largely driven by a decline in investor enthusiasm for Bitcoin ETFs, which soared to record highs following the launch of the first US Bitcoin ETF in October 2021. The rapid inflows into Bitcoin ETFs prompted some analysts to warn of an unsustainable bubble forming in the market.

However, the outflows from Bitcoin ETFs may also be a sign of investors rotating out of the cryptocurrency market as a whole. Bitcoin’s price has fallen significantly in recent months, dropping from a peak of over $73,000 in March to around $54,000 at the time of writing.

The decline in Bitcoin’s price has sparked fears of a bear market, leading some investors to pull their funds out of the cryptocurrency market.

Fidelity, Ark 21Shares, and Grayscale’s GBTC ETF hit hardest

Data from SoSoValue shows that the largest outflows were recorded by Fidelity’s Bitcoin ETF, which saw over $450 million in redemptions. Ark 21Shares’ ARKB fund also experienced significant outflows of $220 million, while Bitwise’s BITB ETF saw $109 million withdrawn.

BlackRock’s IBIT Bitcoin ETF, on the other hand, saw relatively modest outflows, with less than $15 million withdrawn. Notably, Grayscale’s GBTC ETF, which became an ETF earlier this year, also saw significant outflows.

Over the same period, the fund lost $280 million. Since converting into an ETF, GBTC has faced net losses of more than $20 billion, highlighting ongoing challenges for the fund.

Bitcoin ETFs face declining inflows as BTC price drops to $54K

In addition to the outflows, Bitcoin ETFs’ net inflows have also been on a downward trajectory. According to SoSoValue, cumulative net inflows have decreased from a peak of $18.08 billion on August 26 to $16.89 billion.

This decline reflects the broader challenges facing Bitcoin ETFs, as enthusiasm for the financial product appears to be cooling. At the same time, Bitcoin’s price has also faced difficulties.

After reaching a peak of over $73,000 in March, Bitcoin has now fallen to $54,445.17, according to the latest data. The cryptocurrency’s value has dropped by 2.54% over the past day, continuing a recent downward trend.

Over the past week, Bitcoin has fluctuated between $56,000 and $53,000, reflecting ongoing market volatility.

The above is the detailed content of Bitcoin ETF Enthusiasm Cools as Fidelity, Ark 21Shares, and Grayscale GBTC Record $1.1B Loss. For more information, please follow other related articles on the PHP Chinese website!